The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell welcomed the announcement today that Labor, if elected, will establish an independent compensation scheme for victims of financial institutions outside the timelines allowed under current Australian Financial Complaints Authority (AFCA) guidelines.
“This new entity will be able to give compensation up to $2 million for consumers and small businesses who suffered financial and non-financial loss,” Ms Carnell said.
“The new entity will be able to take cases dating back to 1 January 2008. People wishing to have their case reviewed will have two years to submit the claim.
“We have seen so many small and family business operators affected by the extremely poor behaviour of the big banks and other financial institutions and the Royal Commission simply didn’t address this.
“The missing element of this scheme is that small businesses with loans over $5 million still have no avenue to have their cases reviewed.
“We will continue to advocate for bank victims who fall into this category and will push for justice. This will give those businesses that have never had an opportunity to have their case heard have access to justice.”
